Replacement Income, Duration Of Unemployment And The Migration Of Unemployed Prime Age Males

    Authors

    W. W. McHone;B. Rungeling

    Comments

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    Abbreviated Journal Title

    Appl. Econ.

    Keywords

    Insurance; Economics

    Abstract

    The relationship between the interstate migration of unemployed males of prime working age (i.e. 25 44 years of age), the level of unemployment replacement income and the duration of unemployment spells is addressed through the use of a relatively untapped data source - the US Census's Survey of Income and Program Participation (SIPP). The rich set of details that are provided in this database allows a more precise empirical analysis of the above relationships than has been possible with PSID, CPS and other previously used databases. By restricting the sample to a relatively homogeneous segment of the work force it is possible to isolate better the effects of unemployment replacement income and job search duration on the migration decision of unemployed workers without the confounding effects of the variety of demographic factors that previous studies have shown to influence labour force migration. The results suggest that for unemployed prime working age males, the probability of migration is negatively related to the level of unemployment replacement income that is received and positively related to the percentage of the total household income that was contributed by the worker prior to becoming unemployed. Furthermore, by using a quadratic specification the duration of an unemployment spell is shown to have a positive affect on the probability of migration up to a certain point and negative thereafter. The latter result is in contrast to the findings of some of the previous research, which suggests an unambigious negative relationship between the duration of unemployment and the probability of migration.

    Journal Title

    Applied Economics

    Volume

    25

    Issue/Number

    7

    Publication Date

    1-1-1993

    Document Type

    Article

    Language

    English

    First Page

    905

    Last Page

    909

    WOS Identifier

    WOS:A1993LL65500005

    ISSN

    0003-6846

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